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The FTX hacker’s move made many people surprised and worried when he suddenly converted a large amount of Ethereum (ETH) holdings into Bitcoin (BTC) and created a strong discharge.
The attack on FTX on the morning of 11/12 took away up to 500-600 million USD in remaining deposits on the exchange. The attacker then converted most of the assets into ETH. As of the evening of November 19, the hacker’s wallet address owned more than 250,000 ETH, worth $ 304 million, making the holding account the 27th largest Ethereum “whale” in the world.
On the afternoon of November 20, the crypto community discovered that this wallet had moved ETH to a new wallet address and started swapping ETH to BTC through the 1inch exchange. The hacker transferred 50,000 ETH to a new wallet address, then swapped the entire amount to collect more than 3,517 renBTC ~ 60 million USD. The attacker then converts renBTC for Bitcoin and successfully distributes it.
The version of BTC that the hacker received in return is renBTC – Bitcoin on Ethereum is issued by Ren, a cross-chain project invested by Alameda Research and is facing difficulty when its funding is cut.
The hacker’s original wallet still has more than 200,000 ETH, worth nearly $240 million. If this guy wants to change his holdings to Bitcoin, then Ethereum will be under huge selling pressure in the near term.
ETH price has had negative reactions when it has dropped significantly throughout the past few days because of the massive ETH release by hackers.
However, on the morning of November 18, it was the turn of the Bahamas government, where FTX is headquartered, announcing that it had participated in recovering a part of the money on the exchange and putting it in a cold wallet for storage. There are even rumors that it was former FTX CEO Sam Bankman-Fried who helped the Bahamas get money on the exchange.
By 11/21, this guy continued to discharge a large amount of ETH left in the wallet with an amount of up to 200,000 tokens. The hacker divided the remaining ETH (worth 200 million USD) equally among 12 different wallets, each containing 15,000 ETH. Many analysts confirmed that this could be a move to serve ETH swap for renBTC in the near future, although renBTC’s liquidity is not high.
ETH price quickly dropped back to around $1,100 because of this negative news. And many analysts predict a further decline because of the possibility that hackers will continue to dump ETH.
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